OVERCOMING ADVERTISING ATTACKS: ANALYZING APPROACHES TO DISCOUNTING AND DIFFERENTIATION OF CONSUMER REACTIONS IN THE BANGLADESH FOOTWEAR MARKET

When it comes to the Bangladeshi footwear industry, which is highly competitive (with both traditional local producers (e.g., Bata, Apex) and a growing number of foreign brands) promoting their products through price-based promotional strategies (i.e., Buy One Get One Free (BOGO) and direct discounts). Although they are a good pair to implement sales volume in the short run, their widespread and unskilled use threatens to give diminishing returns, alienate consumers and erode brand equity in the long run. This theoretical research is a conceptual study that uses a two-theoretical approach, which is the Elaboration Likelihood Model (ELM) and Attribution Theory to critically examine the dissimilar effect of standardized promotional strategies among different consumer groups in Bangladesh. The analysis hypothesizes that consumer response is not unitary but in a critically mediated relation to socioeconomic status, a dynamic of brand relationship, and the perceived intent of the promotional gift. To the low-involved, price-sensitive shopper, BOGO and heavy discounts are still a major trigger to purchase. On the other hand, to the new aspiring middle class and brand conscious shoppers, incessant discounting may provoke unfavorable attitudes about quality and prestige of the brands leading to a major strategic obstacle among companies trying to upgrade their markets and greatly maintain the premium positioning. The paper concludes that Bangladeshi footwear companies have urgent need to transform their blanket approach of promotion with volumes to a subtle, segment-focused approach. It is proposed to move towards value-added promotions (e.g. free accessories, extended warranty services), use digital Customer Relationship Management (CRM) to do personalized marketing, and align Corporate Social Responsibility (CSR) activities with the promotional communications to support the brand authenticity and to address negative attribution of endless price cuts.